Do you need to set up a representative office in Singapore? (Expert answer)

Thinking about expanding your business to Singapore?

But you’re unsure if a representative office is the right choice.

Unlike a subsidiary or branch, a representative office has strict limitations—it can’t generate revenue or engage in commercial activities.

So, when does it make sense to set one up? And what are the key factors to consider?

In this guide, you’ll get expert insights on whether a representative office is the right fit for your business, along with its benefits, restrictions, and alternatives.

Let’s dive in.

1. What is a representative office in Singapore?

A representative office, or a RO, is a temporary business setup for foreign companies exploring opportunities in Singapore without engaging in commercial activities.

In other words, you can think of a RO as a research and relationship-building hub.

An RO allows you to study the market, build connections, and promote your brand—but it can’t generate revenue, sign contracts, or offer services.

For example, a multinational corporation set up an RO in Singapore to conduct market research on how normal consumer prefers vegan meat or not, which types of products are potential before fully entering the region. 

Since it’s not a legal entity, an RO has strict limitations but serves as a low-risk way to establish a presence in Singapore

2. What are the differences between a Representative office and a branch office?

A representative office is not the only way for entering the Singapore market, a foreign company can choose to open a branch office, a RO, to set a foothold in the Lion City.

When considering options, it’s crucial to understand the differences between a representative office and a branch office.

While both serve as an extension of a foreign parent company (the parent company is fully liable for the entity), the key distinction lies in their allowed actitivites.

If your goal is to test the market before committing, an RO is a low-risk option. If you want to do business and generate revenue, a branch office is the better choice.

3. Why so many international companies choose to register a representative office in Singapore?

A Representative Office (RO) is a low-risk, cost-effective way for major international businesses to explore the Singapore market. 

Here’s why global companies choose this route:

4. What are the limitations of a representative office?

While an RO offers a strategic entry point, it comes with strict restrictions:

4.1. How to set up a representative office in Singapore?

Setting up a ROs in Singapore is a straightforward process with ACRA and Enterprise Singapore, but you must meet specific eligibility criteria and provide the required documents.

4.2. Eligibility criteria and required documents

To qualify for an RO, the foreign company must:

• Have a sales turnover of more than US$250,000;
• Be established for at least three years;
• Intend to employ fewer than five staff members in the RO.

Additionally, the company must have a CorpPass account before applying. If the foreign companies have no CorpPass account, they should engage a registered agent (service provider) like Global Link Asia Consulting to make the RO application

The requirement documents in official English translations include

1. Softcopy of Certificate of Incorporation (or Registration Certificate of the parent company);
2. Softcopy of the latest Audited Accounts of the foreign company;
3. Official letterhead to state the purpose of the RO and the conducting activities in Singapore. (with a signature by the Parent Organization Authorized Personnel).

To submit the final application, you must make a non-refundable processing fee of S$200 per year. Payment can be made via Credit/Debit Cards.

4.3. Step-by-step process to register a representative office

• 1

  Step 1: Understand your needs

• 2

  Step 2: Confirm fees and agreements

• 3

  Step 3: Prepare documents

• 4

  Step 4: Submit Registration

• 5

  Step 5: Obtain Work Pass & Open a Bank Account

5. What to do after opening your representative office in Singapore?

Setting up your representative office is just the first step. To ensure compliance, here’s what you need to do next:

5.1. Operational timeline and renewal

An RO can operate in Singapore for a maximum of three years.

• It must be renewed annually to continue operations.
• After three years, the company must consider converting to a Branch Office, Private Limited (Pte. Ltd.), or a Partnership to maintain its presence.
• In order to register a subsidiary company or a branch office, Singapore requires foreign companies to engage the services of a registered filing agent.

If you need assistance, you can always contact us today

5.2. Tax & legal compliance

An RO is not considered a separate legal entity, so it isn’t required to pay taxes or submit annual financial reports.

However, it must comply with Singapore’s labor laws and employee insurance regulations for its staff.

Reporting & disclosure requirements

All official documents must clearly state: “Registered Representative Office in Singapore.”
The RO must notify Enterprise Singapore (IE) within one month of any changes in:

1.  Office address;
2. Phone number;
3. Fax number.

If the RO closes or transitions into a branch/subsidiary, it must inform Enterprise Singapore within one month.

6. Understanding the role of the Accounting and Corporate Regulatory Authority

The Accounting and Corporate Regulatory Authority (ACRA) plays a crucial role in overseeing the registration and operation of representative offices in Singapore.

They ensure that all foreign entities comply with local laws and regulations, maintaining a transparent business environment.

ACRA also monitors the activities of representative offices to ensure they operate within the confines of the law, focusing solely on non-commercial activities such as market research and client communication.

7. Understanding the role of Enterprise Singapore

Enterprise Singapore plays a vital role in supporting foreign companies looking to enter the local market. They offer various resources, including market insights, networking opportunities, and funding support. 

However, understanding how to leverage these resources effectively can be challenging for foreign companies.

Engaging with Enterprise Singapore early in the process can provide valuable guidance and support, helping you navigate the complexities of setting up a representative office in Singapore.

Their expertise can significantly enhance your understanding of the local business environment and help you make the most of your presence in Singapore.

8. How can we help you with your RO registration?

Establishing a Representative Office (RO) in Singapore is a straightforward way to explore new opportunities

1. But opening an RO is just the beginning. To make the most of your presence in Singapore, you need to 
2. Stay compliant with renewal reporting requirements
3. Plan for the future —whether that means transitioning into a Branch Office or Private Limited (Pte. Ltd.)

The best approach? Use your RO strategically to build connections, test the market, and lay the groundwork for long-term business expansion. And when you need support, you can count on the experts of Global Link Asia Consulting to build your sustainable business expansion

We can help you

• Register a company in Singapore;
• Open a corporate bank account in Singapore with a 99% success rate;
• Choose the right company types for tax optimization in Singapore;
• Apply for Singapore business licenses;
• Get an affordable, professional registered office address for business;
• Support to open, authenticate, and manage Stripe Paypal Business in Singapore, Hong Kong, and the U.S;
• Handle all your tax accounting needs, timely annual filings, auditing, and more.

9. FAQs about Singapore company types

With over a decade of experience serving as a trusted partner to more than 750 business owners seeking professional development and breakthroughs in the international market, we are an  expert strategic corporate service provider helping you incorporate and operate successfully in 10 different countries

Our areas of expertise include:

• Strategic Consulting and Company formation in over 10 different countries worldwide such as Singapore, Hong Kong, the U.S., Australia, Thailand, Malaysia, and offshore destinations like BVI, Belize, Seychelles, and more.
• Account opening for personal and corporate bank accounts, as well as setting up PayPal and Stripe gateqays in countries like Singapore, Hong Kong, and the U.S..
• Tax Consulting and Preparation for SFRS IFRS financial reports, corporate income tax returns, VAT/GST (Value Added Tax/Goods and Services Tax), and more.
• Opreation support:
• Registered adress;
• Foreign consular legalization;
• Trademark and patent protection registration in Singapore and the US;
• Employment Pass application in Singapore and Hong Kong;
• Website design, international SIM number provision;
• DUNS registration.

With over 10 years of experience and a team of experts with 5 to 25 years of experience (international standard certifications) as well as direct partnerships with institutions such as OCBC, UOB, DBS, PayPal, and Stripe, we are proud to offer professional, legal, transparent, sustainable services with no hidden costs.

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